By Nina Kienle
Allegro.eu shares fell after the company forecast slower growth in revenue and adjusted earnings for the holiday quarter on the back of weakness in its international operations and currency headwinds.
At 1027 GMT on Thursday, Allegro’s shares fell 7.4% to PLN30.15.
The Polish e-commerce company said Thursday that it expects revenue to range from a 2% fall to a 2% rise in the fourth quarter compared with a year ago, and adjusted earnings before interest, taxes, depreciation and amortization to grow by up to 6%.
In the third quarter, Allegro’s revenue grew by 4.8% to 2.43 billion Polish zloty ($600.5 million) and adjusted Ebitda increased by 26% to PLN677 million.
The company said it experienced declines in revenue and gross merchandise value in its international segment in the first weeks of the fourth quarter, and that it is facing foreign-exchange headwinds. The company’s Polish operations got off to a solid start to its Black Friday campaign after a dip in growth toward the end of the third quarter.
Allegro swung to a net profit of PLN241.7 million in the third quarter from a loss of PLN2.20 billion, after its results in the year-earlier period were hurt by a write-down on the assets of its Mall Group business.
Write to Nina Kienle at [email protected]
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